By John Kemp LONDON (Reuters) – The U.S. Commodity Futures Trading Commission (CFTC) report on volatility in WTI oil futures, published on Monday, has already been criticised for not probing deeply enough into how and why prices plunged into negative territory for one day in April and then rebounded sharply the next day For at least one CFTC commissioner, the report does not go far enough. “The report is incomplete and inadequate,” CFTC Commissioner Dan Berkovitz complained in a statement accompanying publication. “As the regulatory body responsible for ensuring the integrity and fairness of derivatives markets, the CFTC should provide an accurate analysis of the events that caused the sudden and extreme price movement on that one trading day, in a manner consistent with the requirements of the Commodity Exchange Act. “By leaving out important facts and analysis, the ‘interim, preliminary observations’ in the report do not provide the public with a meaningful understanding of the events of that day and their implications for our markets.” More penetrating inquiries might reveal uncomfortable information about the trading in the run-up to the expiry of the May 2020 WTI futures contract (CLK0) on April 21. They might also raise delicate questions about design… continue reading
Continue reading Column: Left in the dark about WTI crude price plunge: Kemp. This article appeared first on CTRM Center.
Source: CTRM Center